Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
13 Apr 2005
Case Brief
On April 7, 2005, the Reserve Bank of India cancelled the Certificate of Registration issued to Sarita Finance Limited, Hyderabad. The action was taken under Section 45IA of the Reserve Bank of India Act, 1934, which empowers RBI to cancel the registration certificate of a non-banking financial company. As a result, the entity can no longer operate as a registered NBFC/non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration issued to Sarita Finance Limited under Section 45IA of the Reserve Bank of India Act, 1934. The release states that the registration certificate of a non-banking financial company can be cancelled under this provision, and that the firm was registered to carry on the business of a non-banking financial institution.
Operating Impact
Sarita Finance Limited can no longer operate as a registered non-banking financial company. The cancellation affects the company itself and curtails its ability to continue the business of a non-banking financial institution; any ongoing NBFC activity must stop subject to applicable legal requirements.
Regulatory Basis
- Section 45IA of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 7 Apr 2005
- Effective From
- 7 Apr 2005
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC